Energy Bill (HC Bill 206)

(a)references to a gas licence are to a licence for the purposes of section 5 of the Gas Act 1986 (prohibition on unlicensed activities relating to gas), and

(b)5references to an electricity licence are to a licence for the purposes of section 4 of the Electricity Act 1989 (prohibition on unlicensed activities relating to electricity).

98Licence conditions to secure funding of energy supply company administration

(1)10The modifications that may be made under section 97 include, in particular, modifications imposing conditions requiring the holder of the licence—

(a)so to modify the charges imposed by the licence holder for anything done by the licence holder in the carrying on of the licensed activities as to raise such amounts as may be determined by or under the 15conditions; and

(b)to pay the amounts so raised to such persons as may be so determined for the purpose of—

(i)their applying those amounts in making good any shortfall in the property available for meeting the expenses of an energy 20supply company administration; or

(ii)enabling those persons to secure that those amounts are so applied.

(2)Those modifications may include modifications imposing on the licence holder an obligation to apply amounts paid to the licence holder in pursuance of 25conditions falling within subsection (1)(a) or (b) in making good any such shortfall.

(3)For the purposes of this section—

(a)there is a shortfall in the property available for meeting the costs of an energy supply company administration if, in a case where a company 30is or has been subject to an energy supply company administration order, the property available (apart from conditions falling within subsection (1) or (2)) for meeting relevant debts is insufficient for meeting them; and

(b)amounts are applied in making good that shortfall if they are paid in or 35towards discharging so much of a relevant debt as cannot be met out of the property otherwise available for meeting relevant debts.

(4)In this section “relevant debt” in relation to a case in which a company is or has been subject to an energy supply company administration order, means an obligation—

(a)40to make payments in respect of the expenses or remuneration of any person as the energy administrator of that company;

(b)to make a payment in discharge of a debt or liability of that company arising out of a contract entered into at a time when the order was in force by the person who at that time was the energy administrator of 45that company;

(c)to repay the whole or a part of a grant made to that company under section 165 of the Energy Act 2004 as applied by section 95 of this Act;

(d)to repay a loan made to the company under that section as so applied, or to pay interest on such a loan;

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(e)to make a payment under section 166(4) of that Act as so applied; or

(f)to make a payment under section 167(5) of that Act as so applied.

99Modifications under the Enterprise Act 2002

(1)The power to modify or apply enactments conferred on the Secretary of State 5by each of the sections of the Enterprise Act 2002 mentioned in subsection (2) includes power to make such consequential modifications of this Chapter as the Secretary of State considers appropriate in connection with any other provision made under that section.

(2)Those sections are—

(a)10sections 248 and 277 (amendments consequential on that Act); and

(b)section 254 (power to apply insolvency law to foreign companies).

(3)In section 170(1) of the Energy Act 2004 (modification of Chapter 3 of Part 3 of that Act under the Enterprise Act 2002) after “Chapter” insert “(including this Chapter as applied by section 95 of the Energy Act 2011)”.

10015Power to make further modifications of insolvency legislation

(1)The power of the Secretary of State under paragraph 46 of Schedule 20 to the Energy Act 2004 (conduct of energy administration) to make modifications includes power to make such modifications as the Secretary of State considers appropriate in relation to any provision made by or under this Chapter.

(2)20In paragraph 46 of that Schedule, after “Chapter” insert “(including this Chapter as applied by section 95 of the Energy Act 2011)”.

101Interpretation of Chapter 5

(1)In this Chapter—

“business”, “member” and “property” have the same meanings as in the 25Insolvency Act 1986;

“company” means—

(a)

a company registered under the Companies Act 2006, or

(b)

an unregistered company;

“court”, in relation to a company, means the court—

(a)

30having jurisdiction to wind up the company, or

(b)

that would have such jurisdiction apart from section 221(2) or 441(2) of the Insolvency Act 1986 (exclusion of winding up jurisdiction in case of companies having principal place of business in, or incorporated in, Northern Ireland);

35“energy administrator” has the meaning given by section 93(2) and is to be construed in accordance with subsection (2) of this section;

“energy supply company administration order” has the meaning given by section 93(1);

“energy supply company’” has the meaning given by section 93(5);

40“modification” includes omission, addition or alteration, and cognate expressions are to be construed accordingly;

“non-GB company” means a company incorporated outside Great Britain;

“objective of the energy supply company administration” is to be construed in accordance with section 94;

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“relevant licence” has the meaning given by section 93(5);

“subsidiary” and “wholly-owned subsidiary” have the meanings given by section 1159 of the Companies Act 2006;

“unregistered company” means a company that is not registered under 5the Companies Act 2006.

(2)In this Chapter references to the energy administrator of a company—

(a)include references to a person appointed under paragraph 91 or 103 of Schedule B1 to the Insolvency Act 1986, as applied by Part 1 of Schedule 20 to the Energy Act 2004 and section 95 of this Act to be the energy 10administrator of that company; and

(b)where two or more persons are appointed to be the energy administrator of that company, are to be construed in accordance with the provision made under section 158(5) of the Energy Act 2004, as applied by section 95 of this Act.

CHAPTER 615Continental shelf

102Revocation etc of designations under Continental Shelf Act 1964

In section 1(7) of the Continental Shelf Act 1964 (power by Order in Council to designate an area as an area within which rights with respect to the sea bed etcare exercisable), for “revoke Orders for the purpose of consolidating them” 20substitute “revoke, amend or re-enact Orders”.

Part 3Measures for reducing carbon emissions

Offshore electricity

103Offshore transmission and distribution of electricity: extension of time for 25licence modifications and property scheme applications

(1)In section 90 of the Energy Act 2004 (modification of licence conditions for offshore transmission and distribution of electricity), in each of subsections (3) and (8) (time periods for consulting on and making modifications) for “the commencement of this section” substitute “the passing of the Energy Act 2011”.

(2)30In section 91 of the Energy Act 2004 (extension of electricity transmission licences offshore), in each of subsections (6) and (11) (time periods for consulting on and making modifications) for “the commencement of this section” substitute “the passing of the Energy Act 2011”.

(3)In Schedule 2A to the Electricity Act 1989 (property schemes in respect of 35licences for offshore transmission of electricity), in paragraph 5(5) (maximum possible period during which an application for a scheme may be made) for “7 years” substitute “16 years”.

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Security of nuclear construction sites

104Regulation of security of nuclear construction sites

(1)Section 77 of the Anti-terrorism, Crime and Security Act 2001 (regulation of security of civil nuclear industry) is amended as follows.

(2)5In subsection (1) (list of matters that may be regulated) after paragraph (c) insert—

“(cza)nuclear construction sites and equipment used or stored on such sites;”.

(3)In subsection (7) after the definition of “equipment” insert—

10““nuclear construction site” means a site—

(a)

on which works are being carried out with a view to its becoming a nuclear site used wholly or mainly for purposes other than defence purposes; and

(a)the installation is or has been used as part of a CCS demonstration project, and

(b)the trigger event has occurred in relation to the installation at a 35time when the installation was so used (whether before or after it was designated under this section).

(5)The trigger event occurs—

(a)in relation to an installation used for the injection of captured carbon dioxide into a carbon storage facility as part of a CCS 40demonstration project, when captured carbon dioxide is first present at the installation, and

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(b)in relation to an installation used as part of a CCS demonstration project for any other purpose, when captured carbon dioxide is first present at another installation used as mentioned in paragraph (a) as part of the same project.

(6)5Where an eligible CCS installation qualifies for change of use relief—

(a)an abandonment programme notice must not be served on a person who is within section 30(1) of the 1998 Act only because one or more of subsections (7) to (9) applies in relation to the person (but this does not affect the validity of a notice served on 10any such person before the installation qualified for change of use relief), and

(b)a proposal must not be made under section 34(1)(b) of the 1998 Act if the effect of the proposal (if implemented) would be to impose an abandonment liability on a person who is within 15section 34(2)(a) of the 1998 Act only because one or more of subsections (7) to (10) applies in relation to the person.

(7)This subsection applies in relation to a person if—

(a)the person is within paragraph (b) of section 30(1) of the 1998 Act in relation to the installation only by virtue of the fact that 20the person had a right mentioned in section 30(5)(a) of that Act when an activity mentioned in section 30(6) of that Act was last carried on from, by means of or on the installation, and

(b)any such activity was last so carried on before the trigger event occurred in relation to the installation.

(8)25This subsection applies in relation to a person if—

(a)the person is within paragraph (ba) of section 30(1) of the 1998 Act in relation to the installation, and

(b)the transfer mentioned in sub-paragraph (i) of that paragraph took place before the trigger event occurred in relation to the 30installation.

(9)This subsection applies in relation to a person if the person is within paragraph (e) of section 30(1) of the 1998 Act only by virtue of being associated with a body corporate which is within subsection (7) or (8).

(10)This subsection applies in relation to a person if the person has been 35within any of paragraphs (a), (b), (c), (d) or (e) of section 30(1) of the 1998 Act in relation to the installation, but only at a time—

(a)when the installation was an offshore installation (within the meaning given by section 44 of the 1998 Act), and

(b)before the trigger event occurred in relation to the installation.

(11)40The power conferred by subsection (1) does not include a power to revoke an order made under that subsection.

(12)In this section—

“abandonment liability”, in relation to an installation, means a duty to secure that an abandonment programme for the 45installation is carried out;

“abandonment programme”, in relation to an installation, means a programme in respect of the installation approved, or having effect as if approved, by the Secretary of State under section 32 of the 1998 Act;

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“abandonment programme notice” means a notice served under section 29(1) of the 1998 Act;

“captured carbon dioxide” means carbon dioxide that has been produced by, or in connection with, commercial electricity 5generation and captured with a view to its disposal by way of permanent storage;

“carbon dioxide”, “CCS demonstration project” and “commercial electricity generation” have the same meanings as in Part 1 of the Energy Act 2010 (see section 7 of that Act);

10“carbon storage facility” has the same meaning as in section 20;

“Scotland” has the same meaning as in the Scotland Act 1998 (see section 126(1) of that Act).

(13)Section 30(8) to (9) of the 1998 Act (when one body corporate is associated with another) apply for the purposes of this section.

30B15Submarine pipelines converted for CCS demonstration projects

(1)The Secretary of State may by order designate a submarine pipeline as an eligible CCS pipeline.

(2)An eligible CCS pipeline qualifies for change of use relief if—

(a)the pipeline is or has been used as part of a CCS demonstration 20project for a purpose other than the transport of petroleum, and

(b)the trigger event has occurred in relation to the pipeline at a time when the pipeline was so used (whether before or after it was designated under this section).

(3)The trigger event—

(a)25in relation to a pipeline used to transport captured carbon dioxide as part of a CCS demonstration project, occurs when captured carbon dioxide is first present in the pipeline, and

(b)in relation to a pipeline used as part of a CCS demonstration project for any other purpose, occurs—

(i)30when captured carbon dioxide is first present in another pipeline used as part of the same project, or

(ii)if earlier, when captured carbon dioxide is first present at an installation used as part of the same project for the injection of captured carbon dioxide into a carbon 35storage facility.

(4)Where an eligible CCS pipeline qualifies for change of use relief, a proposal must not be made under section 34(1)(b) of the 1998 Act if the effect of the proposal (if implemented) would be to impose an abandonment liability on a person who is within section 34(2)(b) of the 401998 Act only because subsection (5) applies in relation to the person.

(5)This subsection applies in relation to a person if the person has been within any of paragraphs (a) to (c) of section 30(2) of the 1998 Act in relation to the pipeline, but only at a time—

(a)when the pipeline was used solely for activities other than 45activities connected with any mentioned in section 17(2)(a), (b) or (c), and

(b)before the trigger event occurred in relation to the pipeline.

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(6)The power conferred by subsection (1) does not include a power to revoke an order made under that subsection.

(7)In this section—

“abandonment liability”, in relation to a submarine pipeline, is a 5duty to secure that an abandonment programme for the pipeline is carried out;

“abandonment programme”, in relation to a submarine pipeline, means a programme in respect of the pipeline approved, or having effect as if approved, by the Secretary of State under 10section 32 of the 1998 Act;

“captured carbon dioxide” and “CCS demonstration project” have the same meanings as in section 30A;

“carbon storage facility” has the same meaning as in section 20;

“petroleum” has the same meaning as in Part 1 of the 1998 Act (see 15section 1 of that Act) and includes petroleum that has undergone any processing;

“submarine pipeline” has the same meaning as in Part 4 of the Petroleum Act 1998 (see section 45 of that Act).”

“Pipe-lines for Conveying Carbon Dioxide: Compulsory Acquisition of Rights over Land

12AOrders for compulsory acquisition of rights over land: pipe-lines for conveying carbon dioxide

(1)10This section applies in relation to a pipe-line (or a length of a pipe-line) that is intended to be converted into a pipe-line (or length) used for conveying carbon dioxide.

(2)The owner of the pipe-line may apply to the Secretary of State for an order under subsection (3) in relation to land in which the pipe-line (or 15a length of the pipe-line) is situated.

(3)An order under this subsection is an order authorising the owner of the pipe-line to do one or more of the following—

(a)to use the pipe-line (or length of the pipe-line) in the land described in the order to convey carbon dioxide;

(b)20to execute pipe-line works in the land which are necessary in consequence of the presence of the pipe-line (or length) in the land;

(c)to execute pipe-line works in the land to enable the pipe-line (or length) to be used to convey carbon dioxide or in consequence 25of its use to convey carbon dioxide;

(d)to exercise, in relation to the pipe-line (or length), such of the rights mentioned in Schedule 4 as may be specified in the order.

An order under this subsection is referred to in this Act as a “compulsory rights order”.

(4)30A compulsory rights order under this section may be made subject to conditions (see section 13).

(5)On receiving an application under subsection (2), the Secretary of State may grant or refuse the application.

(6)Part 1 of Schedule 2, as modified by Part 2 of that Schedule, has effect 35in relation to applications for compulsory rights orders under this section.

(7)A compulsory rights order under this section enures for the benefit of the owner for the time being of the pipe-line.

(8)The Secretary of State may by order revoke a compulsory rights order 40under this section, in whole or in part, if—

(a)the pipe-line (or length of the pipe-line) is diverted from the land described in the order,

(b)the pipe-line (or length) is abandoned,

(c)the pipe-line (or length) ceases to be used to convey carbon 45dioxide, or

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(d)the owner of the pipe-line makes an application for the revocation of the order.

(9)A compulsory rights order under this section does not affect any right over the land described in the order that would not have been affected 5had the land been compulsorily purchased by virtue of a compulsory purchase order.

(10)A compulsory rights order under this section does not authorise the disregard of any enactment or of any instrument having effect by virtue of any enactment.

(11)10A compulsory rights order under this section is not to be taken to confer a right of support for the pipeline (or length of pipeline).

(12)A compulsory rights order under this section is to be subject to special parliamentary procedure.

(13)For the purposes of this section, “carbon dioxide” includes any 15substance consisting primarily of carbon dioxide.”.

(c)section 103B of the Utilities Act 2000 (Secretary of State’s power to 40require information about carbon emissions and home-heating cost reduction targets).

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(3)The first report under this section must be published before the end of 2014.

(4)The Secretary of State must lay before Parliament a copy of each report under this section.

108Energy efficiency aim

(1)5The Secretary of State must take such action as he considers appropriate to improve the energy efficiency of residential accommodation in England so as to contribute to the Secretary of State fulfilling the duty under section 1(1) of the Climate Change Act 2008 (reduction of net UK carbon account by 2050).

(2)In subsection (1) “residential accommodation” has the meaning given by 10section 1 of the Home Energy Conservation Act 1995.

15Electricity from renewable sources

109Electricity from renewable sources: National Park authorities and Broads Authority

(1)This section applies to a body which is a National Park authority or the Broads Authority.

(2)20The body may—

(a)produce electricity from a renewable source;

(b)establish and operate generating stations and other installations for the purpose of producing electricity from a renewable source;

(c)make grants or loans to enable other persons to do anything which the 25body may do by virtue of paragraph (a) or (b);

(d)use, sell or otherwise dispose of electricity produced by virtue of the powers conferred by this section.

(3)A “renewable source” is—

(a)in England and Wales, a source listed in regulation 2 of the Sale of 30Electricity by Local Authorities (England and Wales) Regulations 2010 (S.I. 2010/1910S.I. 2010/1910);

(b)in Scotland, a source listed in regulation 2 of the Sale of Electricity by Local Authorities (Scotland) Regulations 2010 (S.I. 2010/1908S.I. 2010/1908).

(4)Any regulations which—

(a)35are made in exercise of the power conferred by section 11(3) of the Local Government (Miscellaneous Provisions) Act 1976 (power to prescribe the circumstances in which local authorities may sell electricity), and

(b)amend, revoke or re-enact regulation 2 of the Sale of Electricity by Local Authorities (England and Wales) Regulations 2010,

40may amend subsection (3)(a) for the purpose of providing what is a “renewable source” in England and Wales.